<b>Czech Republic 2007:</b> Retail Chains Expand on Growing Market
PRAGUE, Czech Republic – According to informed estimates, 390,000 bicycles were sold in the Czech Republic in 2007. The average price per bicycle was € 295. This means that people spent € 115 million on bicycles. The number of bicycles sold increased by 11.4%. Most bicycles were sold by IBDs (55% of unit volume, 75% […]
PRAGUE, Czech Republic – According to informed estimates, 390,000 bicycles were sold in the Czech Republic in 2007. The average price per bicycle was € 295. This means that people spent € 115 million on bicycles. The number of bicycles sold increased by 11.4%.
Most bicycles were sold by IBDs (55% of unit volume, 75% of value). The remainder was sold through supermarkets and specialist sport chains.
In the recent time there has been an expansion of the number of shops of foreign chains, such as Intersport, Sportisimo, Halfords, Gigasport, Hervis, etc. especially in Prague. An entry to the Czech market is also being considered by one of the biggest European sports giants – French Decathlon. These sporting goods chains are having a positive influence on domestic dealers by sparking a general increase of the culture of selling bicycles. The market now has a wider assortment of bicycles, including electric bikes and a greater variety of children bikes.
Concentration in Prague
The development of the bicycle market is increasingly influenced by economic growth of the city of Prague. More than 30% of the purchasing power of the Czech Republic is concentrated in Prague. At present a cycling infrastructure is being built, currently there are 306 km of cycle paths in Prague and there are projects for other cycle facilities.
A new web portal, CyclePrague.cz, is also being prepared. The aim is to collect various statistical data about bicycle use, not only in Prague. This data will be used to expand cycle infrastructure and subsequently strengthen the image and popularity of cycling among the growing population of the Czech Republic.
Jump in export
Bicycle exports from the Czech Republic amounted to € 65.87 million last year, a jump of 30.4% on 2006. The main export destination countries and the export value in 2007 were Germany (€ 36.1m), The Netherlands (€ 13.7m), Austria (€ 4.2m), Slovakia (€ 3.8m) and Poland (€ 3.4m).
The value of bicycle imports to the Czech Republic in 2007 totaled € 45.34 million, an increase of 11.5% on 2006. The flow of imports continued steadily throughout the year. Taiwan has been the dominant supplier of imported bikes to the Czech Republic for several consecutive years, and accounted for as much as 87% of imports in 2007. Overall, the trade balance of the Czech Republic in 2007 showed a surplus of over € 20 million.